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Is Israel the ‘Start-Up Nation’ Because of Its Security Situation?
The State of Israel is unique — it enjoys significant economic growth while maintaining one of the highest defense burdens of any country in the world. The reason for the high defense expenditure is that Israel has been engaged in a fight for its very existence from the day of its formation. Concurrently with the ongoing threat, Israel’s economy has grown rapidly, averaging around 4% annual growth over the last two decades.
Israel’s growth strategy is directly tied to investments in research, development, and technology. Science and technology have always been perceived by Israel as key factors in the power equation between itself and its surrounding adversaries. Israel’s expenditure on research and development as a proportion of GDP is one of the highest in the world at approximately 5%. The country’s emphasis on science and technology is evident in the high density of scientists and engineers within its population, which easily competes with that of any developed European country.
In its early years, Israel attempted to address its pressing security challenges by developing a national security strategy that emphasized qualitative parameters to neutralize the quantitative gaps vis-à-vis the surrounding enemy states. Soon after the establishment of the state, David Ben-Gurion — Israel’s first prime minister and minister of defense — articulated that due to Israel’s numerical inferiority, it must strive for qualitative superiority. Israel identified science and technology as critical for the accomplishment of this strategy.
Ben-Gurion further asserted that scientific research and technological development were essential not only for security needs, but also for the development of Israel in terms of agriculture, industry, and education. His plan was to enlist the best scientific minds of the Jewish people and to motivate young scientific talents to dedicate their lives to scientific research. They were to be provided with advanced equipment and well-equipped laboratories in fields such as physics and biology, with the expectation that they would align their research efforts towards the security and development of the country.
Given that “big science” involves long development cycles, high uncertainty, substantial risk, and a considerable chance of failure, engaging in extensive private-commercial science and technology projects without state intervention was exceptionally challenging, if not impossible, in the initial decades of Israel’s existence. The necessity for government funding stands out as a primary obstacle for smaller nations seeking to cultivate such capabilities. However, despite the challenges it faced and its status as a small state, Israel managed to overcome these barriers, successfully constructing and advancing a significant technological infrastructure. Israel attributes much of this success to making technological superiority a cornerstone of its national security strategy, which led in turn to the establishment of a well-developed and technologically advanced defense sector.
The end of the 20th century saw a dramatic change in the world’s technological landscape. State-owned technological innovation led primarily by the defense sector shifted towards innovation led by the entrepreneurs and investors of the private sector, establishing what we know today as the start-up age. Today, annual investment in commercial startups worldwide is significantly higher than investment in defense R&D. The private commercial sector dominates technological innovation and the defense sector often “feeds” on these innovations for its own applications, rather than the other way around.
Following this shift in technological dominance and leveraging its highly developed science and technology infrastructure, Israel has managed to position itself as a global source of technological innovation and business entrepreneurship, and is often referred to accordingly as the “Start-Up Nation.” Israel has many hi-tech companies listed on the NASDAQ, the second-largest stock exchange in the world after the New York Stock Exchange. Israel’s presence on the NASDAQ is second only to that of the United States and China. As of the end of 2022, there were over 130 Israeli companies listed on the NASDAQ, which is comparable to those of the British, French, and German companies on the exchange combined.
In the last decade, Israel’s investment in research and development has been the highest in the world relative to GDP by a significant margin. Additionally, Israel’s venture capital fundraising rate is among the highest globally on a per capita basis, and the success rate of its unicorn companies is particularly high. Between 1999 and 2014, approximately 10,000 start-up companies were established in Israel, with 2.6% achieving an annual profit of at least $100 million. In the Global Competitiveness Report for 2018-19, which ranked 141 countries, Israel was first in entrepreneurial culture and second in availability of venture capital. In 2021, investments in Israeli startups reached an unprecedented peak of $26 billion.
Given this context, it might seem reasonable to argue that aligning Israel’s highly developed technological ecosystem with its unique security context may have been relevant in its early decades, but has grown less so with time. This might appear on the surface to be true, as Israel’s economy seems to have extricated itself over the last few decades from the clutch of the defense sector and transformed the country into the “Start-Up Nation” it is today.
But the argument is inaccurate, as the connection between the Israeli hi-tech industry and the Israeli defense sector remains robust. To appreciate why, we need to delve into the Israeli technological ecosystem.
The ties to the defense system, particularly to the IDF, play a pivotal role for the Israeli hi-tech industry. In Israel, most citizens undergo mandatory military service, and after their discharge, many continue on active reserve duty. There is thus a continual interaction between the Israeli civilian and military domains.
This ongoing connection significantly empowers entrepreneurs serving in the IDF’s technological units to introduce novel technologies and devise solutions that can benefit the defense system. These entrepreneurs possess an in-depth personal understanding of that system and can identify its needs, weaknesses, and vulnerabilities. They utilize the training and extensive knowledge they acquired during their military service in the development process to great effect.
In the Israeli hi-tech sector, many of the start-up companies specializing in intelligence and cybersecurity are predominantly staffed by graduates of military technological units like Units 8200 and 81. These start-ups are involved in advancing defense-related technological projects, delivering training to defense entities, and providing prompt responses to the system’s operational needs. In many cases, the products offered by these companies are not generic but are meticulously tailored to meet specific operational requirements. Many projects undertaken by these companies are at the forefront of technological advancement.
To comprehend just how profound is the influence of this phenomenon on the Israeli hi-tech industry, we should examine the two units mentioned above, 8200 and 81. In the late 1990s, the IDF recognized the pivotal role of the cyber domain and took on the challenge of identifying and training suitable human resources. The IDF accordingly instituted unique advanced selection processes to recruit high-quality personnel. The innovative training program and courses transformed these young recruits into true experts in their fields.
Between 2003 and 2010, 100 or so officers and soldiers who completed their service in Unit 81 established around 50 start-up companies, collectively raising over $4 billion. Many of these companies continue to yield substantial revenues, and some have achieved successful exits. Unit 8200 was a major contributor to the emergence of many cybersecurity companies, including the legendary Check Point; Adallom, acquired by Microsoft for $320 million; and Armis, acquired by Accenture for $1.1 billion.
More than 1,000 start-ups have been founded by 8200 alumni. Its graduates are involved not only in cybersecurity start-ups but in many other fields as well, ranging from Waze to Wix to SolarEdge. These examples represent only a small fraction of the broader trend. It is no exaggeration to assert that graduates of these units have significantly shaped the Israeli hi-tech sector over the past decade. These units are a true powerhouse propelling the Israeli hi-tech sector, with a significant portion of the technology they develop flowing back to defense applications.
When analyzing the unique relationship between the IDF and the private commercial hi-tech sector in Israel, we can see that Israel’s unique security situation has created a mechanism through which both parties are so interwoven as to make it difficult at times to tell them apart. It is in Israel’s best interest to continue to nurture this unique relationship, which is beneficial for Israel’s prosperity as well as its security.
Nir Reuven is a researcher at the BESA Center, an engineer, and a former officer in the Merkava development program (the main Israeli battle tank). He has held management positions in the Israeli hi-tech industry and is an expert on technology. Currently he is co-manager of the Sapir College Innovation and Entrepreneurship Center. He is working on his Ph.D. and lectures at Bar-Ilan University. A version of this article was originally published by The BESA Center.
The post Is Israel the ‘Start-Up Nation’ Because of Its Security Situation? first appeared on Algemeiner.com.
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Syria’s Sharaa Says Talks With Israel Could Yield Results ‘In Coming Days’
Syrian President Ahmed al-Sharaa speaks at the opening ceremony of the 62nd Damascus International Fair, the first edition held since the fall of Bashar al-Assad’s regime, in Damascus, Syria, Aug. 27, 2025. Photo: REUTERS/Khalil Ashawi
Syria’s President Ahmed al-Sharaa said on Wednesday that ongoing negotiations with Israel to reach a security pact could lead to results “in the coming days.”
He told reporters in Damascus the security pact was a “necessity” and that it would need to respect Syria’s airspace and territorial unity and be monitored by the United Nations.
Syria and Israel are in talks to reach an agreement that Damascus hopes will secure a halt to Israeli airstrikes and the withdrawal of Israeli troops who have pushed into southern Syria.
Reuters reported this week that Washington was pressuring Syria to reach a deal before world leaders gather next week for the UN General Assembly in New York.
But Sharaa, in a briefing with journalists including Reuters ahead of his expected trip to New York to attend the meeting, denied the US was putting any pressure on Syria and said instead that it was playing a mediating role.
He said Israel had carried out more than 1,000 strikes on Syria and conducted more than 400 ground incursions since Dec. 8, when the rebel offensive he led toppled former Syrian leader Bashar al-Assad.
Sharaa said Israel’s actions were contradicting the stated American policy of a stable and unified Syria, which he said was “very dangerous.”
He said Damascus was seeking a deal similar to a 1974 disengagement agreement between Israel and Syria that created a demilitarized zone between the two countries.
He said Syria sought the withdrawal of Israeli troops but that Israel wanted to remain at strategic locations it seized after Dec. 8, including Mount Hermon. Israeli ministers have publicly said Israel intends to keep control of the sites.
He said if the security pact succeeds, other agreements could be reached. He did not provide details, but said a peace agreement or normalization deal like the US-mediated Abraham Accords, under which several Muslim-majority countries agreed to normalize diplomatic ties with Israel, was not currently on the table.
He also said it was too early to discuss the fate of the Golan Heights because it was “a big deal.”
Reuters reported this week that Israel had ruled out handing back the zone, which Donald Trump unilaterally recognized as Israeli during his first term as US president.
“It’s a difficult case – you have negotiations between a Damascene and a Jew,” Sharaa told reporters, smiling.
SECURITY PACT DERAILED IN JULY
Sharaa also said Syria and Israel had been just “four to five days” away from reaching the basis of a security pact in July, but that developments in the southern province of Sweida had derailed those discussions.
Syrian troops were deployed to Sweida in July to quell fighting between Druze armed factions and Bedouin fighters. But the violence worsened, with Syrian forces accused of execution-style killings and Israel striking southern Syria, the defense ministry in Damascus and near the presidential palace.
Sharaa on Wednesday described the strikes near the presidential palace as “not a message, but a declaration of war,” and said Syria had still refrained from responding militarily to preserve the negotiations.
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Anti-Israel Activists Gear Up to ‘Flood’ UN General Assembly
US Capitol Police and NYPD officers clash with anti-Israel demonstrators, on the day Israeli Prime Minister Benjamin Netanyahu addresses a joint meeting of Congress, on Capitol Hill, in Washington, DC, July 24, 2024. Photo: REUTERS/Umit Bektas
Anti-Israel groups are planning a wave of raucous protests in New York City during the United Nations General Assembly (UNGA) over the next several days, prompting concerns that the demonstrations could descend into antisemitic rhetoric and intimidation.
A coalition of anti-Israel activists is organizing the protests in and around UN headquarters to coincide with speeches from Middle Eastern leaders and appearances by US President Donald Trump and Israeli Prime Minister Benjamin Netanyahu. The demonstrations are expected to draw large crowds and feature prominent pro-Palestinian voices, some of whom have been criticized for trafficking in antisemitic tropes, in addition to calling for the destruction of Israe.
Organizers of the demonstrations have promoted the coordinated events on social media as an opportunity to pressure world leaders to hold Israel accountable for its military campaign against Hamas in Gaza, with some messaging framed in sharply hostile terms.
On Sunday, for example, activists shouted at Israel’s Ambassador to the UN Danny Danon.
“Zionism is terrorism. All you guys are terrorists committing ethnic cleansing and genocide in Gaza and Palestine. Shame on you, Zionist animals,” they shouted.
BREAKING: PRO-PALESTINE PROTESTORS CONFRONT “ISRAELI” AMBASSADOR DANNY DANON AT THE UNITED NATIONS
1/5 pic.twitter.com/4G1VYEMGzV
— Within Our Lifetime (@WOLPalestine) September 14, 2025
The Combat Antisemitism Movement (CAM), warned on its website that the scale and tone of the planned demonstrations risk crossing the line from political protest into hate speech, arguing that anti-Israel activists are attempting to hijack the UN gathering to spread antisemitism and delegitimize the Jewish state’s right to exist.
Outside the UN last week, masked protesters belonging to the activist group INDECLINE kicked a realistic replica of Netanyahu’s decapitated head as though it were a soccer ball.
US activist group plays soccer with Bibi’s mock decapitated HEAD right outside NYC UN HQ
Peep shot at 00:40
Footage posted by INDECLINE collective just as UN General Assembly about to kick off
‘Following the game, ball was donated to Palestinian Genocide Museum’ pic.twitter.com/TQ84sgZhKr
— RT (@RT_com) September 9, 2025
Within Our Lifetime (WOL), a radical anti-Israel activist group, has vowed to “flood” the UNGA on behalf of the pro-Palestine movement.
WOL, one of the most prolific anti-Israel activist groups, came under immense fire after it organized a protest against an exhibition to honor the victims of the Oct. 7 massacre at the Nova Music Festival in southern Israel. During the event, the group chanted “resistance is justified when people are occupied!” and “Israel, go to hell!”
“We will be there to confront them with the truth: Their silence and inaction enable genocide. The world cannot continue as if Gaza does not exist,” WOL said of its planned demonstrations in New York. “This is the time to make our voices impossible to ignore. Come to New York by any means necessary, to stand, to march, to demand the UN act and end the siege.”
Jewish Voice for Peace (JVP) and Palestinian Youth Movement (PYM), two other anti-Israel organizations that have helped organize widespread demonstrations against the Jewish state during the war in Gaza, also announced they are planning a march from Times Square to the UN headquarters on Friday.
“The time is now for each and every UN member state to uphold their duty under international law: sanction Israel and end the genocide,” the groups said in a statement.
JVP, an organization that purports to fight for “Palestinian liberation,” has positioned itself as a staunch adversary of the Jewish state. The group argued in a 2021 booklet that Jews should not write Hebrew liturgy because hearing the language would be “deeply traumatizing” to Palestinians. JVP has repeatedly defended the Oct. 7 massacre of roughly 1,200 people in southern Israel by Hamas as a justified “resistance.” Chapters of the organization have urged other self-described “progressives” to throw their support behind Hamas and other terrorist groups against Israel
Similarly, PYM, another radical anti-Israel group, has repeatedly defended terrorism and violence against the Jewish state. PYM has organized many anti-Israel protests in the two years following the Oct. 7 attacks in the Jewish state. Recently, Sen. Tom Cotton (R-AK) called for a federal investigation into the organization after Aisha Nizar, one of the group’s leaders, urged supporters to sabotage the US supply chain for the F-35 fighter jet, one of the most advanced US military assets and a critical component of Israel’s defense.
The UN General Assembly has historically been a flashpoint for heated debate over the Israeli-Palestinian conflict. Previous gatherings have seen dueling demonstrations outside the Manhattan venue, with pro-Israel and pro-Palestinian groups both seeking to influence the international spotlight.
While warning about the demonstrations, CAM noted it recently launched a new mobile app, Report It, that allows users worldwide to quickly and securely report antisemitic incidents in real time.
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Nina Davidson Presses Universities to Back Words With Action as Jewish Students Return to Campus Amid Antisemitism Crisis
Nina Davidson on The Algemeiner’s ‘J100’ podcast. Photo: Screenshot
Philanthropist Nina Davidson, who served on the board of Barnard College, has called on universities to pair tough rhetoric on combatting antisemitism with enforcement as Jewish students returned to campuses for the new academic year.
“Years ago, The Algemeiner had published a list ranking the most antisemitic colleges in the country. And number one was Columbia,” Davidson recalled on a recent episode of The Algemeiner‘s “J100” podcast. “As a board member and as someone who was representing the institution, it really upset me … At the board meeting, I brought it up and I said, ‘What are we going to do about this?’”
Host David Cohen, chief executive officer of The Algemeiner, explained he had revisited Davidson’s remarks while she was being honored for her work at The Algemeiner‘s 8th annual J100 gala, held in October 2021, noting their continued relevance.
“It could have been the same speech in 2025,” he said, underscoring how longstanding concerns about campus antisemitism, while having intensified in the aftermath of Hamas’s Oct. 7, 2023, massacre across southern Israel, are not new.
Davidson argued that universities already possess the tools to protect students – codes of conduct, time-place-manner rules, and consequences for threats or targeted harassment – but too often fail to apply them evenly. “Statements are not enough,” she said, arguing that institutions need to enforce their rules and set a precedent that there will be consequences for individuals who refuse to follow them.
She also said that stakeholders – alumni, parents, and donors – are reassessing their relationships with schools that, in their view, have not safeguarded Jewish students. While supportive of open debate, Davidson distinguished between protest and intimidation, calling for leadership that protects expression while ensuring campus safety.
The episode surveyed specific pressure points that administrators will face this fall: repeat anti-Israel encampments, disruptions of Jewish programming, and the challenge of distinguishing political speech from conduct that violates university rules. “Unless schools draw those lines now,” Davidson warned, “they’ll be scrambling once the next crisis hits.”
Cohen closed by framing the discussion as a test of institutional credibility, asking whether universities will “turn policy into protection” in real time. Davidson agreed, pointing to students who “need to know the rules aren’t just on paper.”
The full conversation is available on The Algemeiner’s “J100” podcast.